BIR Ruling [UN-281-95]

July 31, 1995 BIR RULING [UN-281-95] Hon. Ruben D. Torres Executive Secretary Office of the President Malacaang S i r : This refers to your Memorandum requesting our comment on the Resolution of the Municipal Mayors League of Misamis Oriental endorsing the Petition of the Misamis Oriental Association of Coco Traders, Inc. (MOACT) petitioning His Excellency President Fidel V. Ramos, to revoke VAT Ruling No. 190-90 and Revenue Memorandum Circular No. 47-91 and/or to condone the value-added tax assessed against the members of said association. In connection therewith, please be informed that the issues raised by MOACT in its petition to President Ramos dated February 21, 1995, had already been decided by the Supreme Court in G.R. No. 108524 promulgated on November 10, 1994 involving the taxpayer itself. In that case, MOACT filed a petition for prohibition and injunction against the Department of Finance and the Bureau of Internal Revenue seeking to nullify RMC No. 47-91 and enjoin the collection of the value-added tax on the sale of copra by members thereof. The Supreme Court denied the said petition of MOACT and upheld the correctness and validity of BIR Ruling No. 190-90 and RMC No. 47-91. To sustain now the petition of MOACT would render nugatory the aforesaid decision of the Supreme Court. We are, therefore, not inclined to recommend the condonation of the value-added tax validly assessed against the member of MOACT and other copra dealers and traders by virtue of BIR Ruling No. 190-90 and RMC No. 47-91 considering the pressing need of the Government for increased revenue. Moreover, R.A. No. 7716 otherwise known as the Expanded Value-Added Tax Law exempting the sale of copra from VAT cannot yet be enforced in view of the Temporary Restraining Order issued by the Supreme Court. Pending decision by the Supreme Court, the sale of copra remains subject to 10% VAT pursuant to Section 103 of the Tax Code, as amended by E.O. No. 273. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue